OVERSEA BUTTER-MARKETING

Hawke's Bay Herald-Tribune, Issue 45, 9 March 1937, Page 4

OVERSEA BUTTER-MARKETING

In our yesterdays issue appeared a lengtby exposition uy Professor Eiddet, of Massey Agricultural College, as to what be regards as tbe causes joi tbe marked decline ia tbe London market quotations for New Zealand butter. Tbe Professor is, in some raspects at least, well enougb qualified to express an opini^n, tbougb no doubt it may be suspeeted of at least some little bias in favour of his employers and so tend to make out tbe best possible case for tbem. However, even accepting tbe explanations be offers, be still fails to tell ns bow it is tbat Gontinental butter, wbicb formerly commandei muob lower prices tban Dcyminion, is now pretty well on a level with it, and tbat, too, altbough it bears an import duty of 15/- a cwt., wbile tbe New Zealand product ds admitted free. It makes tbe puzzle only the more pnzzling to tell us tbat tbe Russian Government adopts pretty well tbe same system of marketing as does our own. Then, Professor Riddet would have us understand tbat tbe maia eause of tbe fall in prieee is over-supply. JBut, as against tbis, it was oue of our Government's boasts tbat it would so regulate supply as to avoid any serious fkictuations in prices. "Stability" was their watehword and, in tbe interests of tbe taxpayers wbo will bave to beax ultimate losses, tbis is just as essential as if tbere were no guaranteed prices for tbe actual producexs. Tbe glut in tbe market would seem to be as much due to an accumulation of New Zealand buttex as of any otber. Indeed, it is a littEe bit difficult to onderstand bow at tbis period of tbe year European butter can be in sucb plentiful supply. It certainly oceasions some wonder as to wbat tbe position will be wben tbe daiiying season tbene, as will shortly be tbe case, is in full swing. Wbat prospect will tbere then be of advantageously unloading tbe big . stocks tbe New Zealand Government is now piling up?, How tbese are still increasing is pnobably indicated by tbe overdraft on tbe Govern5 ment's DaiTy Industry Acconnt with tbe Reserve Bank. At tbe be- . ,ginning of tbis mantb tbe debit on tbat account bad gone up during , ihe past week by cIosb on £150,000 to very nearly £6£-million in all. In tbe meantime, too, tbe volume of Dominion production is also no 1 doubt steadily increasing, but at enhanced cost tbat will make proj fitable competition witb the European still more difficult. Tbese are i points upon wbicb Professor Riddet should, as an economist, be best qualified to enligbten us.